The disaster relief loan is for victims whose primary residence within a Presidentially-Declared Major Disaster Area was destroyed or damaged to such a extent that reconstruction or replacement is necessary. The FHA 203(h) disaster loan helps victims recover by allowing them to purchase a Singe Family Property as their new principal residence.

  • No down-payment is required. The borrower is eligible for 100 percent financing. Closing costs and prepaid expenses must be paid by the borrower in cash or paid through premium pricing or by the seller, subject to a 6 percent limitation on seller concessions.
  • Mortgagees collect from the borrowers an up-front insurance premium (which may be financed) at the time of purchase, as well as monthly premiums that are not financed, but instead are added to the regular mortgage payment.
  • HUD sets limits on the amount that may be insured. To make sure that its programs serve low and moderate income people, FHA sets limits on the dollar value of the mortgage. The current FHA mortgage limit can be viewed online. These figures vary over time and by place, depending on the cost of living and other factors (higher limits also exist for two to four family properties).



  • FICO as low as 580 (stipulations may apply)
  • Your previous residence (owned or rented) must have been located in a federally declared disaster area and be destroyed or damaged to such an extent that reconstruction or replacement is necessary.
  • The purchased property must be a single family property or a unit in an FHA-approved condominium project
  • These loans are for principal residences only – there is an occupancy required for the FHA 203(h)
  • Borrowers have up to one year from the date the disaster area was declared



  • Purchase a home for primary residence to replace your flood damaged home
  • 100% financing available
  • No down payment
  • Max LTV 100% of the adjusted value
  • Options available for no out-of-pocket expense (Contact me to be connected with a lender that is offering this!)
  • 15 and 30 year fixed terms available


Find out more information on this loan on the Housing and Urban Development website. Contact me directly and I can put you in touch with a lender that you can speak with directly to get the answers you need.


Legal Disclaimer: The material provided here is for informational purposes only and is not intended, and should not be considered, as legal advice for your particular matter. You should contact your attorney to obtain advice with respect to any particular issue or problem. Applicability of any legal principal discussed in this material may differ substantially in individual situations.

Due to the rapidly changing nature of the real estate marketplace and the law, I make no representation, warranty, or guarantee of the accuracy or reliability, of any information provided here or elsewhere. Any legal or other information found here, or at other sites to which I link, should be verified before it is relied upon.